Building Automation and Controls Market

The global Building Automation and Controls Market is valued at USD 104.58 Billion in 2024 and is projected to reach a value of USD 367.2 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 12.10% between 2025 and 2035.

Key highlights of Building Automation and Controls Market

• Europe accounted to express largest revenue share of 34.02% in Building Automation and Controls Market in 2024
• Asia Pacific is predicted to obtain fastest Building Automation and Controls Market growth during the forecast period
• In 2024, the Heating, Ventilation and Air Conditioning Control Solution segment dominated the Building Automation and Controls market with revenue share of 32.1%
• The wireless technology segment asserted to mention largest revenue share of 61.2% in 2024
• The Commercial segment is accounted to have a largest revenue share of 49.2% in 2024
• As highlighted by the International Energy Agency (IEA), in areas where traditional biomass is heavily relied upon, buildings' energy consumption can make up an astounding 80% of the total regional energy usage. The increasing prevalence of electrical systems within buildings is compounding energy consumption and carbon emissions. Thus, prioritizing the efficient and sustainable use of energy resources becomes essential.

Building Automation and Controls Market: Regional Overview

Europe dominated the Building Automation and Controls Market with a revenue share of 34.02% in 2024. The increasing awareness and adoption of

Internet of Things (IoT) technologies

Europe experiences remarkable surge in demand for smart door locks among residential consumers. Established industry leaders leverage this demand by providing sophisticated smart

door locks

U.S. Building Automation and Controls Market Overview

The U.S. focuses on smart building solutions by integrating smart technologies for enhanced building management and sustainability practices. For instance, The U.S. Department of Energys (DOE) Federal Energy Management Program (FEMP) is launching a Federal Smart Buildings Accelerator to design and implement specific approaches to increase the adoption of smart building and grid-responsive technologies that manage electric loads in facilities. This focus drives the requirement for advanced building automation and control systems, thus, contributing to the markets growth. The increase in infrastructure building in the U.S. is another significant driver for developing the Building Automation and Controls Market. The rise in infrastructure building drives the market for integrating building automation and control systems, essential for efficient and optimized building operations. For instance, the U.S. DOE (Department of Energy) invested million in 10 pilot projects that deploy new technology to transform thousands of homes and workplaces into state-of-the-art, energy-efficient buildings in 2021.

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The global Building Automation and Controls market can be categorized as Offerings, Technology, Industry Vertical, and Region.

Building Automation and Controls Market: Offering Overview

In 2024, Heating, Ventilation and

Air Conditioning

Building Automation and Controls Market: Technology Overview

The wireless technology segment held a significant market share of 61.2% in 2024. The Technology segment covers Wired and Wireless. Wireless technology offers various advantages driving its growth in the Building Automation and Controls market. These advantages include enhanced mobility, cost savings, simplified installation (especially in existing buildings), reliable network connectivity through security algorithms, scalability, link reliability, real-time capabilities, and energy independence when used with energy-harvesting devices. These features make wireless technology a preferred option for building automation systems, contributing to its growth. Countries like India and China are increasingly investing in smart city initiatives, where building automation systems plays a crucial role in achieving energy-saving goals. According to USCC.gov, Chinas government has invested over 9.9 billion in smart city pilot projects, equivalent to more than RMB 1 trillion in 2022. The integration of wireless technology in building automation systems is fueling the demand for wireless solutions in the market.

Building Automation and Controls Market: Industry Vertical Overview

The Commercial segment held a significant market share of 49.2% in 2024. The Industry Vertical segment is classified into Residential, Industrial, and Commercial. Building

Energy Management Systems

Key Trends

• The integration of Internet of Things (IoT) technology with cloud computing is transformative shift in the growth of the Building Automation and Controls Market. It utilizes IoT enabled services in order to access real-time data analytics, remote monitoring, and predictive maintenance capabilities.
• Growing environmental issues asserted the requirement for energy efficiency and sustainability solution in building automation systems. Thus, various companies are developing technologies to optimize energy usage, reduce carbon emissions, and meet green building standards.
• Integration of AI and ML technologies into building automation help in augmenting predictive analytics, fault detection, and autonomous operation. For example, Johnson Controls offers AI-driven algorithms analyze data patterns, identify anomalies, and optimize real-time building performance to improve energy efficiency, and cost savings.
• Due to the increasing connectivity of building automation systems,

  cybersecurity

  has become a top priority. For example, ABB offers cybersecurity solutions for building automation, including firewalls, encryption, and intrusion detection systems to safeguard against cyber-attacks and unauthorized access to building systems.

Premium Insights

The high energy consumption and carbon emissions associated with buildings are accelerated the requirement for advancement in Building Automation and Controls (BAC) systems. Buildings currently use 40% of the countrys energy and 75% of its electricity, while contributing 35% of annual carbon emissions, according to the U.S. Department of Energy. This means that energy-efficient and sustainable building solutions are essential, rather than optional, as clients, tenants, and occupiers now demand green building practices. Developers are now expected to integrate active emission mitigation technology into their projects from the beginning. A recent study by the DOE predicts that by 2030, grid-interactive buildings could save up to billion annually in power system costs and reduce 80 million tons of carbon emissions each year. This is equivalent to greater emission reductions than the combined annual emissions of 50 medium-sized coal plants or 17 million cars.

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Market Dynamics

Development of Smart Cities in Emerging Countries Drives the Building Automation and Controls Market

Growing demand for

smart homes

Integration of Internet of Things (IoT) technology in Building Systems Drives the Building Automation and Controls Market

Integration of Internet of Things (IoT) technology into building automation systems is a revolutionized trend in the growth of the Building Automation and Controls Market. These technology offers improved monitoring and control capabilities over essential systems such as lighting, HVAC, security, and energy management. It also helps in collecting real-time data and giving valuable insights. IoT applications in BACS include

smart lighting systems

Competitive Landscape

Within the Building Automation and Controls Market, innovators like Fr. Sauter AG and Daikin Applied are at the forefront, showcasing their latest product releases. Fr. Sauter AGs introduction of the next generation of IoT-capable actuators in July 2022 has set new standards for building automation. These smart actuators enable heating, ventilation, and air conditioning systems to operate autonomously or partially autonomously, streamlining control processes. On the other hand, Daikin Applieds launch of Site Line Building Controls in January 2022 highlights their commitment to delivering scalable, cloud-based solutions for building management.

The key players in the global Building Automation and Controls market include - ABB among others.

Recent Market Developments

• In January 2024, Honeywell introduced Advance Control for Buildings, a revolutionary platform representing a significant advancement in the companys building controls innovation journey. Engineered to automate building management and lay the groundwork for enhancing a buildings energy efficiency, Advance Control seamlessly integrates cutting-edge technologies with decades of innovation and domain expertise.
• In January 2024, Legrand® has disclosed its acquisition of ZPE Systems, Inc., a provider of essential solutions and services aimed at ensuring resilience and security for customers' critical business infrastructure. This encompasses serial console servers, sensors, and service routers facilitating remote access and management of network IT equipment from data centers to the edge.
• In October 2023, Hubbell Incorporated has revealed its definitive agreement to purchase Northern Star Holdings, Inc. for $1.1 billion in cash. Systems Control, renowned for its production of substation control and relay panels, as well as comprehensive substation control building solutions, will be acquired through this transaction.
• In January 2023, ABB introduced its ABB Cylon Smart Building Management Systems (BMS) tailored for the Middle East market during the Light Middle East and Intelligent Building Middle East 2023 event. The ABB Cylon Smart Building Management Systems range encompasses scalable automation and energy control solutions suitable for a diverse array of commercial or industrial buildings, irrespective of their size.